Vietnam International Bank (VIB) officially announced the acquisition of the Ho Chi Minh City branch of the Commonwealth Bank of Australia (CBA) on July 3. CBA is also a strategic shareholder of VIB.

The State Bank of Vietnam (SBV) has officially approved the transfer of all of the branch’s operations to VIB.

CBA has invested in VIB since 2009 and currently holds 20 per cent of its charter capital.

“This decision restates our commitment to Vietnam as we strengthen our strategic partnership with VIB,” said Mr. Steve Ellis, Director of CBA Vietnam. “We also believe that VIB will continue to provide high quality service to our customers.”

“We respect our strategic partnership with CBA and at the same time look forward to strengthening the partnership to promote CBA’s capabilities,” said Mr. Han Ngoc Vu, General Director of VIB.

CBA’s Ho Chi Minh City branch opened in 2008 after being licensed by the SBV. Existing customers of the branch will now be served through more than 400 VIB ATMs and 17,000 ATMs of domestic banks nationwide.

They will also have the opportunity to access a range of VIB products and services, including digital banking products.

CBA will maintain its representative office in Hanoi, opened in 1994, which will act as a bridge to government agencies, financial institutions, and businesses in Vietnam.

VIB recorded significant achievements last year thanks to its efficient, safe, and sustainable development, and focused on sustainable sources of revenue, cost optimization, and efficient risk management. It has been rated by Moody’s as having among the highest financial strength for three consecutive years, from 2014 to 2016.

It aims to earn pre-tax profit of VND750 billion ($33 million) this year, 7 per cent higher than last year, and VND120 trillion ($5.3 billion) in total assets, up 15 per cent, and will strive for a minimal decline in its credit balance with VAMC and for non-performing loans (NPLs) to be at less than 3 per cent.